Eurasia says licence applications progressing at Monchetundra and West Kytlim
Regarding West Kytlim, Eurasia revealed that it had received a final written approval from Russian agency, Rosnedra, for subsoil use in relation to its Tipil licence application, now requiring only a formal meeting of the local mines commission to fully complete the process.
This new licence will contain around 17km of river course and sedimentary units proven to host PGM deposits at the West Kytlim project.
Chairman, Christian Schaffalitzky said he expects the licence to expand production volumes at the site to “further increase” Eurasia’s presence in the West Kytlim area as well as strengthen their position as “the largest alluvial operation globally”.
Separately, as its application for Monchetundra progresses, the company has kept its EPCF contract in place with Sinosteel, a major importer of iron ore to China which is financing 85% of the $176mln deal.
A $50mln sub-contract is established within the contract, which is integral to establish the route of the project’s development -- once activated, the contract provides for a payout of the total $50mln over a period of 36 months.
Shares in Eurasia Mining were trading 13.13% higher at 0.325p on Wednesday morning.
Currently, the sub-contract remains inactive and the company is able to kick-start the Sinosteel EPC contract at any time at its discretion, until 2027.
“We believe we are now established as a dominant player in the PGM space in the region and look forward to scaling up our operation providing a low cost PGM solution that is sustainable over potentially several decades,” added Schaffalitzky.
In a separate announcement, the company clarified information regarding the PGM resources in the Monchetundra flanks and other areas adjacent to its production licence.
The company reported potential resources in the company’s licence at around 15mln ounces with additional potential resources occurring within 5km of the licence area at around 4mln ounces.
Schaffalitzky said Eurasia had “always noted” significant potential in the area and that the group now “more strongly” believes the site can be developed into a new global mining region for PGM.
He further emphasised how this would place the area at rivalry with other larger PGM producing regions of the world including the Bushveld Complex in South Africa and the Taimyr Peninsula in Russia.
Analysts at independent broker, First Equity, labelled the shares with a “buy” rating at a price target of 12.75p per share.
“With PGM prices on an upward trajectory, talks with interested parties in motion, a favourable mineral licensing regime, a highly liquid share that is now on the radar screen of institutional investors,” they added.
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